Project Update Week ending 25 May 2018

Toowoomba region breaks commercial projects but this is the first instance in which Risen has taken on a direct more ground in Queensland’s role. solar landscape 20 May “This project also joins other renewable Solar is continuing to become a staple of projects dotted along this region’s landscape Queensland’s landscape, including the Oakey and Darling Downs solar with construction starting today at the new projects and the Coopers Gap Wind Farm. 121 megawatt Yarranlea solar farm, west of Toowoomba. “While Queensland is blessed with an abundance of sunshine, it has been the Energy Minister Dr Anthony Lynham said the championing of the right investment climate Yarranlea Solar Farm was further confirmation by the Palaszczuk Government which has that Queensland and the Palaszczuk helped to secure this investment.” Government was leading the charge in renewable energy investment. Risen Energy’s Project Development & Investment Director John Zhong said the “The Yarranlea Solar Farm is building on the company was proud to be involved with the state’s existing and current renewable energy Yarranlea Solar Farm. projects as a $240 million, 200-job and 121 megawatts energy generator,” Dr Lynham “This is Risen Energy’s first of many company- said. owned solar developments in Australia.

“The commencement of construction of the “The 121 megawatts Yarranlea Solar Farm will Yarranlea solar farm signifies the beginning of be constructed using as many local resources a 12-month journey to being operational, as possible including labour, equipment, when the switch will be flicked and it begins contractors and accommodation. powering approximately 32,000 homes. “When completed the Yarranlea Solar Farm “This investment by Risen Energy will see the will supply power to homes, businesses and installation of approximately 400,000, two by industries in the Darling Downs region and the one metre solar panels over 250 hectares at South East,” Mr Zhong said. Yarranlea, creating even more employment opportunities for the Toowoomba and Darling “Risen Energy’s investment in Queensland is Downs region. another important step in securing the state’s solar investment boom and its renewable “Risen Energy is already a part of economy,” Dr Lynham said. Queensland’s renewables sector with its panels used in a number of large-scale and

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There are 56 large-scale solar projects recently announced $200 million Lakeland currently in the approvals or construction wind farm, also in the Far North. process in Queensland. “When complete, these projects will more Source: Queensland Government than double Queensland’s renewable energy output and produce enough electricity to power close to one million homes,” Dr Wind farm to generate power Lynham said and jobs for the Far North “Our 50 per cent renewable energy 21 May generation target by 2030 has boosted the Far North Queensland residents are set to level of renewable energy investment, benefit from a wind farm project for up to 29 bringing significant projects to regions right turbines as part of Neoen’s planned green across the state. power hub at Kaban 80km south west of Cairns. “This is yet another project to join our $4.3 billion pipeline of renewable energy projects Minister for State Development, underway or financially committed,” he said. Manufacturing, Infrastructure and Planning Cameron Dick announced that the State had Minister Dick said each turbine would have an provided development approval for the wind electrical output of up to 5.5 megawatts farm project, which would bring substantial (MW). It was expected that the total investment to the region and is expected to generation capacity would be up to 160 MW. create around 150 jobs during construction. The turbines would have a maximum height of 240 metres. “The proposed development at Kaban is for a wind farm for up to 29 turbines and additional “Neoen worked closely with the department infrastructure, including a substation and to assess acoustic impacts on nearby houses, battery storage facility,” Mr Dick said. impacts on fauna, native vegetation clearing and traffic impacts,” Mr Dick said. “This means jobs for the region over the 12- month estimated construction period and “Conditions are recommended to be imposed more clean energy for the region to tap into. on the decision that will mitigate and manage acoustic, flora and fauna and traffic impacts. “The green power hub, which will incorporate the wind farm, is a $300 million project, “The Queensland Government looks forward planned to operate for at least 30 years and to bringing more job-creating, economy- generate enough power to supply 57,000 boosting projects to the Far North,” he said. homes. Source: Queensland Government “The Queensland Government welcomes private sector investment of this kind in support of the state’s renewable energy policy.”

Minister for Energy Anthony Lynham said the new wind farm would complement more than two dozen large-scale projects that were currently committed or under construction throughout Queensland, including the

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AGL completes assessment of Planning approval for Wesley offer from Chow Tai Fook Vale solar farm Enterprises and Alinta Energy 21 May Latrobe Council has today announced the 21 May approval of the Wesley Vale Solar Farm, near On 30 April 2018, AGL Energy Limited received Devonport, which will become Tasmania’s an unsolicited, non-binding, highly conditional largest solar farm. The development will indicative offer from Chow Tai Fook supply up to 12.5 megawatts (a.c.) of Enterprises and Alinta Energy Pty Limited to renewable energy to the grid, enough to acquire the , associated power 2,900 homes. assets and the related site for a cash consideration payable to AGL of $250 million Most importantly, the project will strengthen (the Offer). and diversify Tasmania's energy mix, as a

complement to the hydro-electric backbone. AGL has completed a thorough assessment of the Offer and, after careful consideration, has Epuron is very excited to see the project enter advised Chow Tai Fook and Alinta that it will the next phase of development. We not proceed any further with the Offer. The appreciate the efforts already made by AGL Board has determined that the Offer is Council and the local community to reach this not in the best interests of AGL or its milestone, and we are committed to shareholders. The Offer significantly continuing our engagement with all project undervalues future cash flows to AGL of stakeholders. operating the Liddell Power Station until 2022 and the repurposing of the site thereafter. Epuron is now finalising the grid connection

arrangements for this project and preparing In considering the Offer, AGL sought external for construction to commence in 2019. expert advice on matters relevant to the

Offer, including the capital expenditure Source: Epuron requirements across all plant components and the reliability and safety profile of the ageing power station. Consequently, AGL has reaffirmed its decision to close Liddell in Construction to start for Cattle December 2022 and will continue progressing Hill Wind Farm its NSW Generation Plan, which includes 21 May repurposing Liddell. The Australian Energy Goldwind, alongside Power China Resource Market Operator has confirmed that Limited (PCR), a subsidiary of POWERCHINA completion of this Plan will address the Ltd, today announced construction will capacity shortfall that may occur as a result of commence for the Cattle Hill Wind Farm, Liddell’s closure. located in Central Tasmania.

Source: AGL Energy Vice President, Power Construction

Corporation of China Ltd, Mr Li, said PCR is pleased to be partnering with Goldwind to deliver the Cattle Hill Wind Farm project.

‘We look forward to working with Goldwind and key project partners to successfully construct and operate the wind far,’ Mr Li said.

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Tasmanian civil construction company, Hazell Share Purchase Plan raises Brothers, will be one of the key partners for the project during the construction period. $5.3 million 22 May “Hazell Brothers recently successfully Carnegie Clean Energy Limited (ASX: CCE) is completed the site access works for the pleased to announce that it has raised $5.3 project. The agreement signed today allows million to grow its solar, battery and wave Hazell Brothers to commence early works for energy businesses. the project and acknowledges them as the preferred contractor for the full civil and Carnegie’s Managing Director, Dr Michael electrical works for the wind farm,” said Mr Ottaviano, said: John Titchen, Managing Director of Goldwind “We thank our shareholders for their support Australia. in the capital raise. We will now use this new capital and our existing funds to accelerate “Hazell Brothers has extensive experience in our businesses towards financial delivering large-scale infrastructure projects sustainability.” in Tasmania,” said Mr Titchen. Carnegie previously announced on 30 April TasNetworks will now commence all works 2018 that it had initiated a Share Purchase required to connect the wind farm to the Plan which allowed all eligible Carnegie Tasmanian grid. Once operational, the project shareholders to purchase between $2,500 and will provide clean energy to power $15,000 worth of shares in Carnegie at 3.0 approximately 63,500 Tasmanian homes each cents per share. The offer price equated to year. approximately a 12% discount based on the share price at the close of trading on 27th The project will establish a community fund, April 2018 and a 15% discount on the 20 day donating $120,000 into the local community volume weighted average price. each year. An example of this is the recent major sponsorship of the World Fly Fishing Carnegie identified that the funds raised Championship to be held in Tasmania in 2019. would be used to move its wave and solar/hybrid businesses toward profitability. Last year, Goldwind and Aurora Energy Specifically, funds raised were for working announced a long-term partnership for the capital to deliver its existing projects, to purchase of Tasmanian generated renewable further develop and convert its contract energy certificates produced by the wind pipeline, develop its build, own and operate farm, assisting Aurora Energy to meet its project pipeline and to pursue opportunities obligations under national renewable energy to expand its businesses either organically or legislation. through corporate transactions. The issue of shares the subject of the Share Purchase Plan Source: Goldwind Australia will occur over the next 5 business days.

Source: Carnegie Clean Energy

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Global solar leader adds Queensland off the back of the great success we have already seen in our solar projects, Longreach to their portfolio like the Longreach solar farm and the Oakey 22 May 80-megawatt solar farm.” Dr Qu said. Queensland is taking another step to becoming Australia’s solar state with the Mr Whiting said Canadian Solar was making a commissioning of Canadian Solar’s $29 million major investment and contribution to the Longreach solar farm. State’s solar boom.

Representing Energy Minister Dr Anthony There are 56 large-scale solar projects Lynham at the project inauguration event at currently in the approvals or construction Longreach, Member for Bancroft Chris process in Queensland. Whiting, welcomed this investment from Canadian Solar - one of the world’s large solar Source: Queensland Government panel manufacturers.

“The Longreach solar farm is being NEW PROJECT progressively commissioned and is operating at 50 per cent capacity exporting 7 megawatts Pallamana Solar Farm of power into the Ergon Energy grid. Developer: RES Australia Location: Pallamana, north-west of Murray “When fully operational it will power around Bridge in South Australia 5000 homes. Capacity: 176 MW LGA: Murray Bridge “The Palaszczuk Government’s Solar150 Description: Located on approximately 730 program is now paying dividends with hectares of farmland predominantly used for Canadian Solar’s project being one of the first cropping and grazing. The project aims to commissioned to come online to the national supply energy to the National Electricity electricity market. Market by generating electricity through the use of Solar PV panels. Energy will also be “The Solar150 program was designed to help stored and dispatched later through the use kick-start the State’s solar investment boom of banks of Lithium Ion Batteries. RES will be by providing long-term revenue certainty holding a Community Information event on giving proponents including Canadian Solar a Tuesday 29 May 2018 in Murray Bridge. 20-year revenue guarantee. Contact: Chris Gosling “The Longreach Solar Farm will be followed by Project Manager the initial 25-megawatt stage of Canadian RES Australia Solar’s 80-megawatt Oakey solar farm which Email: [email protected] is due to be running and grid-connected by Tel: (02) 8440 7400 September. This is another dividend of the State’s Solar 150 program.”

Canadian Solar Chairman and Chief Executive Officer Dr Shawn Qu said the Longreach project would be followed by the commercial operation of the two-stage Oakey Solar Farm with the first stage expected for completion in August 2018.

“Canadian Solar is looking forward to further contributing to the growth of solar energy in

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Construction to start at The project is expected to create up to 300 jobs during construction peaks on site and Goldwind’s Stockyard Hill employ up to 25 permanent maintenance Wind Farm staff once the wind farm is complete. 23 May The development and management plans for Once operational, Stockyard Hill Wind Farm the Stockyard Hill Wind Farm have now been will produce clean energy to power endorsed by the Victorian Government. On- approximately 391,000 Victorian homes. site construction work for the 530 megawatt (MW) project will now commence. Source: Goldwind Australia

Goldwind Australia’s Managing Director, Mr John Titchen, said receiving the endorsed PROJECT NEWS development and management plans is a key Darlington Point Solar Farm project milestone. EIS for Edify Energy’s 275 MW Darlington Point Solar Farm, plus ancillary infrastructure “On site construction for the Stockyard Hill including 100MWh battery energy storage Wind Farm will now start. We look forward to system, in NSW placed on exhibition until 20 continuing to work with the Victorian June. The project area, approximately 10 km Government, local councils, the local south of the town of Darlington Point, community and other key partners to comprises the TransGrid Darlington Point construct Australia’s largest wind farm.” Mr Substation and the proposed solar farm site, Titchen said. which is approximately 1042 hectares (ha) in size, with approximately 710 ha proposed to The Stockyard Hill Wind Farm will comprise of be developed for the solar farm. 149 Goldwind advanced technology turbines. Augmentation works would be undertaken Goldwind Australia will provide Engineering, within the existing substation. The site and Procurement and Construction services to the surrounding lands are zoned as RU1 – Primary project and the Warranty, Operations and Production. A 330 kV and two 132 kV Maintenance services once the project is TransGrid overhead transmission lines cross operational. Goldwind Australia has the site from west to east, and a 33 kV appointed a joint venture between SNC- overhead transmission line Lavalin and WBHO as the Balance of Plant runs north-south near the eastern boundary contractor for the project. of the site. The project has an estimated capital investment value of $407 million, The project has a long-term Power Purchase consisting of $353 million for the solar farm Agreement with . Origin Energy and $54 million for the BESS. will buy all the power generated by the wind farm and the associated renewable energy Contact: Andy Winter certificates until 2030. Edify Energy Email: [email protected] Recently, Goldwind and AusNet Services signed the connection agreement for construction of connection assets for the project. The connection agreement, which was also signed by the Australian Energy Market Operator, set out the terms and conditions for the wind farm to connect to Victoria’s transmission network.

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NSW solar farms approved Currawarra Solar Farm Another RES Australia proposal for a new 195 The NSW Department of Planning & MW solar farm approximately 25 km Environment approved four new solar farms northeast of Deniliquin in the Edward River this week… local government area approved. The

Currawarra Solar Farm project is located on a Jemalong Solar Farm 620 hectare site which is relatively flat and Vast Solar is proposing to build a 50 MW solar has been largely cleared for agricultural farm at Jemalong Station, approximately purposes. The proposed development 26km south west of Forbes in the Forbes Shire footprint within the site is 472 ha and has Council local government area. The project been designed to largely avoid site constraints would be located on a 679 hectare (ha) site including remnant vegetation. adjacent to Vast’s existing 6 MW concentrated solar thermal pilot plant. Vast The project involves the construction of a new has a separate State Significant Development solar farm with a generating capacity of 195 application for a concentrated solar thermal MW and battery storage capacity of 44 MWh. plant which it intends to amend to relocate The key components of the project include the proposed CSP plant to an adjacent site. approximately 654,200 solar panels,

approximately 42 inverter stations, a lithium- The project site has a 165 ha development ion battery storage facility, with up to 22 footprint, is relatively flat, consists mostly of battery housing containers, and an onsite cleared agricultural land, and is on land zoned substation and associated underground and RU1 – Primary Production. The solar farm will overground cabling connection to TransGrid’s be comprised of approximately 170,000 solar 132kV transmission network. panels, approximately 22 inverter stations and a new 66 kilovolt (kV) grid connection Wellington Solar Farm substation and approximately 5km 66 kV Development approval granted for First transmission line to Essential Energy’s Solar’s 174 MW Wellington Solar Farm, with existing West Jemalong Substation. an energy storage facility near Wellington in

central NSW. The project is located on a 559 Tarleigh Park Solar Farm hectare site near the Mitchell Highway, RES Australia received approvals to develop a approximately 2km north-east of Wellington. new 90 MW solar farm approximately 23km There is an existing 330 kV overhead east of Deniliquin, in the Edward River local transmission line that passes through the site, government area. The Tarleigh Park Solar and connects to Transgrid’s Wellington Farm project is located on a 250 hectare site substation, directly adjacent to the south of which is relatively flat and has been largely the site. The project site consists mostly of cleared for agricultural purposes. The cleared agricultural land, and is currently used proposed development footprint within the for irrigation cropping and grazing, and site is 173 ha and has been designed to avoid includes three small farm dams. site constraints including remnant vegetation.

The project includes approximately 440,000 The project involves the construction of solar panels and approximately 50 inverter approximately 243,200 solar panels, stations, an energy storage facility with up to approximately 16 inverter stations, a lithium- 6 purpose-built blocks, a substation within ion battery facility with a storage capacity of TransGrid’s Wellington substation containing 16 MWh, and an onsite substation directly one transformer and associated switchgear, connected into the existing TransGrid 132kV and an overhead 33kV, 132 kV or 330 kilovolt overhead transmission line. (kV) transmission line connecting the energy

storage facility to the substation. It has an

expected cost of $270mil to construct.

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Energy Security Board - The UPC Renewables Australia platform is focused on large scale projects and is National Energy Guarantee - managed by a high-quality management Issues Papers team” said AC Energy president and CEO, Eric 22 May T. Francia. The ESB has prepared the following issues papers to facilitate discussions with “The Robbins Island project itself is a very jurisdictions and Technical Working Groups on large site and together with Jim’s Plains have several detailed design elements. some of the best proven wind resources in the world, and the New England Solar project has Following the discussions with jurisdictions excellent solar resource within close proximity and Technical Working Groups, more detailed to Transmission” he said. technical working papers will be developed. The technical working papers and draft final The Chief Executive Officer of UPC design document will be available for public Renewables Australia, Mr Anton Rohner said consultation in mid-June. “AC Energy investment into UPC Renewables Australia will enable us to accelerate projects The Issue Papers are available at in Australia. We are making progress on the http://www.coagenergycouncil.gov.au/public Robbins Island and Jims Plain project in North ations/energy-security-board-national- West Tasmania and we endorse the Prime energy-guarantee-issues-papers Minister’s recent comment about how wind and hydro are highly complementary. We Source: COAG Energy Council expect our projects in North West Tasmania to have capacity factors in the order of 50% with the turbines producing power nearly 95%

of the time.” AC Energy to invest in Australia renewables platform “The Robbins Island and Jims Plain projects, 23 May together with Tasmania’s hydro assets and AC Energy, a wholly owned subsidiary of Ayala other new renewable energy projects, will Corporation, will participate in the Australian assist in making the interconnectors between renewables market through a joint venture Tasmania and Victoria, a dispatchable and with international renewable energy significant renewable energy generator into developer, UPC Renewables. AC Energy is the National Electricity Market.” investing USD 30M for a 50% ownership in UPC's Australian business and is also providing Source: Ayala a USD 200M facility to fund project equity.

UPC Renewables Australia is developing the 1,000 MW Robbins Island and Jims Plain projects in North West Tasmania and the 600 MW New England Solar Farm located near Uralla in New South Wales.

UPC Renewables Australia also has a further development portfolio of another 3,000 MW’s located in NSW, Tasmania and Victoria.

“AC Energy is very excited to invest into UPC Renewables Australia as it complements AC Energy’s goal to exceed 5,000 MW by 2025.

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The world’s most influential certainly be faster without trade disturbances like the recent Section 201 ruling. companies are committed to Nonetheless, I always recommend companies 100% renewables; is yours? invest in a balanced portfolio of renewable 23 May assets and contracts. Firstly, the risk profiles Major corporations, particularly US for wind and solar are different, and secondly, corporations, are driving forward with despite new tariffs, solar has reached the renewable energy investment at record rates point where it is fully price-competitive with even in spite of ongoing policy uncertainty. wind in many geographic markets.

The RE100 is a collaborative, global initiative Canadian Solar, through both our module uniting influential businesses committed to sales and project development businesses, 100% renewable electricity, working to has played a key role in fostering corporate massively increase demand for - and delivery procurement of solar energy in the US and of - renewable energy. To date, 132 elsewhere around the world for many years. companies have made the RE100 pledge. As Our wholly-owned subsidiary Recurrent one powerful example, Apple recently Energy was one of the first developers to announced that 100% of its facilities execute a sizeable agreement (11 MW across worldwide – including its supply chain – are 12 sites) with a corporate offtaker, Kaiser now powered by renewable energy. Permanente, as early as 2011. In 2014, Canadian Solar partnered with IKEA, one of What this shows me is that renewable energy the RE100 signatories, to develop solar makes business sense, and that the decision- systems across seven sites in Australia. In makers that run these corporations recognize 2016, LinkedIn used Canadian Solar CS6X- the value of these investments – both in 315P modules on its first NetZero building as terms of the bottom line and in terms of the part of its Sunnyvale, CA campus. And in environmental benefits they produce. It 2017, we supplied 47 MW of CS6U-P modules shows that even in the absence of renewable for Starbucks’s NC-47 project in North energy leadership coming from the US federal Carolina. government, consumers and investors want to see investment in renewable energy Thus far, corporate PPAs have not been as continue and even increase. And increase it successful in China as they have been in the will. According to Bloomberg New Energy US and elsewhere in the world, partly because Finance (BNEF), the RE100 signatories have regulation does not allow private PPAs spurred $94 Billion in investment in between renewable power plants and renewable energy. corporate users. We hope to see this change soon, as regulatory barriers come down and Unfortunately, solar represents a much multinational companies extend their smaller percentage of corporate renewable renewable energy pledges to their supply investment than does wind. According to chains in China and elsewhere in Asia. BNEF, corporations signed 2.8 GW of PPAs for However, China is the clear leader in on-site wind and solar in 2017, more than half the solar installations by corporates with an global total of 5.4 GW. However, solar estimated 8 GW of capacity according to represented only 500 MW of that 2.8 GW, BNEF, though all of these are self- with wind representing the remaining 2.3 GW. consumption and net-metering projects.

Policy uncertainty due to tariffs and other What will it take for all companies around the trade disturbances has certainly contributed world to follow the example set by the RE100 to caution on the part of corporate buyers in signatories? What will it take for all procuring solar energy. Progress towards governments around the world to end 100% corporate renewable energy would isolationist trade policies that erect

Page 9 (Click on relevant project links to go to online Project Database) unnecessary barriers to doing the right thing Nephila Climate's CEO Richard Oduntan said, for the environment and for the bottom line? "NCx is delighted to see the expansion of the In the 17 years since I founded Canadian Proxy Revenue Swap to Australia and to solar Solar, I have witnessed both courageous projects. We are pleased that the availability leadership and disastrous protectionism as a of such customized risk capacity served a response to the rise of solar energy. Solar is critical role in helping to de-risk these two here to stay, and discerning companies know solar projects." that the commitment they make to solar and other renewables now will pay financial, Elliott Green Power's CEO, Umberto environmental, and customer loyalty Tamburrino, added: "We are delighted to dividends for many years to come. partner with NCx and Allianz on this innovative transaction, and look forward to Source: Dr. Shawn Qu expanding our relationship with them in the future."

Nephila Climate and Allianz Allianz's Managing Director, Karsten Berlage also noted, "We are excited to create and close proxy revenue swap for commercialize this new risk management tool Australia solar farms owned by for the solar industry following our successful provision of hedging solutions for investments Elliott Green Power, Ltd in the wind sector." 24 May Nephila Climate ("NCx"), the weather and Source: Nephila Climate ESG-driven specialty division of Nephila Holdings Ltd., together with Allianz Global Corporate & Specialty SE's alternative risk transfer unit ("Allianz"), announced today that they have closed a first set of solar Proxy Revenue Swaps for two solar projects in Australia, the Susan River Solar and Childers Solar facilities. The two five-year transactions will protect the new solar projects' revenues from the financial risks associated with uncertain production volume, timing of energy generation and future energy prices.

The 98 MW Susan River Solar farm and 78 MW Childers Solar farm, owned entirely by subsidiaries of Elliott Green Power, Ltd., ("Elliott") are both located in South East Queensland, Australia. Elliott announced financial close for the projects in January 2018 and construction is expected to take nine months.

These two transactions mark the first time the Proxy Revenue Swap has been applied to a solar venture since the innovative hedging product was launched in 2016. Previously, Proxy Revenue Swap transactions have been used to de-risk wind projects.

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